Gold Futures Were Trading in the Red During Noon Trade Market
Gold futures were trading in the red during noon trade in the domestic market on Friday as investors and speculators exited positions in the precious metal as rising speculation of a US Fed interest rate hike in June dimmed the bullion’s appeal as a store of value.
Minutes from the Fed’s April meet showed that policymakers are considering the option of a June rate hike while high-ranking officials from the world’s biggest central bank have also called for further policy tightening in the near-term.
New York Fed President William Dudley stressed that the world’s top central bank is moving closer to tightening interest rates at one of its two upcoming meetings while Richmond Fed’s Jeffrey Lacker also called for higher interest rates.
Gold, a non-interest bearing asset, loses sheen during a rising interest rate scenario.
At the MCX, Gold futures for June 2016 contract is trading at Rs 29,751 per 10 gram, down by 0.15 per cent after opening at Rs 29,718, against the previous closing price of Rs 29,797. It touched the intra-day low of Rs 29,698.
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